Costco vs. Sam's Club: Which Membership Is A Better Value?

All About Costco's Membership

Let's begin with Costco, the largest name in warehouse retail. Those who want to shop at the store can choose from three membership tiers: Gold Star, Business, and Executive.

The cheaper options are Gold Star and Business, which will each run you $65 per year in fees. Their perks are essentially the same, except with the Business membership, you're allowed to buy Costco items with the intention of reselling, and you can add other cardholders for a fee of $65 per person.

The Executive membership is $140 per year and offers some extra benefits on Costco's services. Additionally, Executive members can earn a 2% reward annually on eligible purchases, up to $1,250.

When it comes to offerings and prices, Costco has become famous for its in-house brand, Kirkland Signature, allowing shoppers to buy everything from vitamins to trash bags at a discount. A 2022 review conducted by Business Insider also found that Costco has cheaper prices, but sources seem to conflict on whether or not that's always true, especially since it depends on what specific items shoppers most frequently buy.

Lastly, both Costco and Sam's Club have a 100% satisfaction guaranteed return policy on merchandise and memberships, meaning you can cancel your membership at any time and receive a refund. Still, there are some exceptions when it comes to things like electronics, cigarettes, alcohol, and diamonds over one carat.

Next Up, The Sam's Club Membership

Sam's Club has two membership levels. The Club membership costs $50 per year, while the Plus membership is $110 annually. The latter allows members to earn 2% Sam's Cash up to $500 per year, as well as additional benefits like early shopping hours to beat crowds and free delivery or shipping on orders over $50.

As mentioned, it remains a debate whether Costco or Sam's Club has better prices. However, one thing is clear: there is less off-brand variety at Sam's Club.

Remember Costco's Kirkland Signature brand? Sam's Club has a similar brand called Member's Mark, which offers more affordable alternatives to mainstream products. However, Sam's Club seems to place a greater emphasis on national name brands.

With that being said, there's also a major perk to being a Sam's Club member: you'll get to skip the infamous long lines that often plague Costco. That's because Sam's Club actually offers curbside pickup and a "Scan and Go" option in its mobile app. The mobile app is especially convenient, too, since it provides a running total as you shop in-store, making budgeting a bit easier.

So, Which Is Better – Costco Or Sam's Club?

Costco's and Sam's Club's memberships are both competitively priced, and each store offers a variety of affordable products and extra benefits. So, which one you join should really come down to convenience and personal preference.

For instance, if you wouldn't mind buying off-brand Kirkland Signature items, Costco might offer more opportunities to save. Or, if you prefer name-brand products, Sam's Club may be the way to go.

Additionally, keep in mind that no two households have the exact same shopping list, so someone you know might find one warehouse club to be cheaper simply because they're buying different things than you. The best way to make an informed decision before becoming a member of either is by visiting both the Costco and Sam's Club websites and comparing the prices of the items you plan to buy most frequently.

Finally, depending on where you live, the proximity of a Costco versus a Sam's Club location to you may be the deciding factor. After all, you could wind up wasting money on gas if you have to drive an extra 20 minutes each way to reach a Costco instead of a Sam's Club, or vice versa.